real-time data means personalized viewer experiences.
With so much content to choose from, viewers want personalized experiences and innovative content delivery that caters to their tastes, giving them what they want, when they want it.
Media companies and media service providers can meet viewers’ demand for personalized experiences by tapping into a goldmine of real-time data streams captured through the vast global IoT network. This can then be actioned through the likes of innovative content delivery, contextual advertising and capitalizing on the second screen experience.
There are strong business benefits for delivering a personalized viewer experience (VX), including increased viewer engagement, improved advertising ROI and gaining an all-important edge against competitors.
contextual advertising.
In 2023, contextual advertising spending was estimated at $227.38 billion globally.
IoT devices can gather contextual data such as location, weather conditions and user activities. Media companies can use this data to deliver targeted advertisements that are relevant to viewers' current context, enhancing the effectiveness of advertising campaigns.
A leading example of this is Spotify, the most popular music streaming platform in the world. Spotify employs contextual advertising by recommending music playlists, podcasts and sponsored content based on users' listening history, preferences and real-time data such as location and time of day.
A business benefit for understanding viewers' preferences and using this insight in contextual advertising is achieving higher advertising revenue. Media companies that deliver targeted advertisements that are more relevant to the audience will see an increase in the effectiveness of their ads, leading to higher click-through rates and ultimately more advertising revenue.
second screen experiences.
70 percent of adults use a second device while watching TV. Smartphones lead the way at 51 percent, followed by laptops (44 percent) and tablets (25 percent) as preferred second screens.
Many viewers use multiple devices simultaneously while consuming media. IoT devices can enable second-screen experiences where additional content, contextual information, or interactive features are provided on viewers' smartphones or tablets based on their viewing behavior and preferences.
ESPN has integrated second screen experiences into its sports coverage, where viewers can use their smartphones or tablets to access real-time stats, player information and interactive features like live polls while watching live games or events on TV. ESPN’s customer satisfaction has seen an increase of 9 percent.
A business benefit to maximising on second screen experiences is the increase in viewer retention and engagement. By providing content that aligns with peoples’ preferences to interact across multiple devices — smart TV and smartphone, for example — leads to higher viewer satisfaction and loyalty, reducing churn rates and increasing the time spent on the channel.
feedback and analytics.
Preferences for personalized content, better quality user experience and pricing are key factors influencing consumer loyalty and instant switches from media providers to another.
IoT devices can provide real-time feedback, engagement metrics and predictive analytics in media to reveal viewer engagement, content preferences and viewing patterns. Media companies can use this data to analyze viewer behavior in real-time, identify trends and make informed decisions to enhance content offerings and viewer experiences.
Netflix—the leading video on demand streaming media service—gathers viewer data in an instant feedback loop to assess the performance of its programmes, not just on how many hours have been watched but on how much it “thrilled” the audience — and the size of that audience relative to the economics of the title.
The deep insights delivered by data analytics provide enhanced customer understanding and the business benefit of gaining a competitive advantage by really knowing what an audience wants. This then supports data-led decision making, and ultimately better advertising efficiency and viewer retention.
Media companies must provide personalized viewer experiences to enhance engagement, loyalty and competitiveness in a saturated market. Failure to do so could mean decreased viewer engagement, lower retention rates and potential loss of audience to competitors who offer tailored content.
Media companies should embrace the data made available by IoT through the likes of smart TVs, streaming devices and mobile apps. It is this data that will create more relevant, dynamic and interactive viewer experiences, driving retention and revenue growth.